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DCCUMENT BESURE
06479 - f B2027044 ]
The Department of Defense Could Save Several Millions Dollars
Annually through Improved Management acd Control of Betisable
Containers. LCD-78-214; B-157476. July 19, 1978. 35 pp.
Report to Secretary, Department of Cetense; by Richard W.
Gutaann, Director, Logistics and Communicationa Div.
issue Area: Facilities and Eaterial Management: Consolidating or
Sharing Supply and Maintenance Systems (701).
Contact: Logistics and Communications Liv.
Budget Function: National Defense: Department of Detense -
Military (except procurement & contracts) (051).
Orqaaiz,tion Concerned: Department of the Axuy; Departsnt of
thAi- Nyavy
Conqressionai. Relevance: House Committee on Armed Services;
Senate Committee on Armed Services.
The military services spend at estimated $2 billion
annually for packaging. The Army and Navy could save millions of
do2lars annually by improving their ccntx3ls and accounting
systecs relative to specialized reusable containers.
Findinqs/Conclusions: Existing controls are not sufficient to
prevent the loss of valuable specialized reusatle ccntainers by
the military services. This lack of ccntrol and visibility has
resulted in unnecessary procurement of containers, unnecessary
fabrication of substitute containers, and premature disposal of
containers. Although reusable containers have characteristics
similar to other items of supply and many containers are of high
dollar value, they are generally not treated &s accountable
assets. As a result, containers may te oktained without cost to
the user, lost without explanation, dizosed of without
justification, or sold without approval. CCL and tie military
services need to give more attention tc the management ard
control of reusable containers to eliminate such problems as
misuse, failure to red*stribute excess reusable containers, and
premature disposal. The Army and Navy are not selecting reusable
containers based on cost-effectiveness analyses or other
relevant criteria. Recommendations: The Secretary of Defense
should establish DOD policies that will: assure that specialized
containers are used and reused to the fullest extent
practicable: prevent the loss or premature disposal of these
assets; study the designation of regicnal clearinghouses to
collect, repair, aind redistribute containers; require the
services to account for specialized reusable containers, revise
container repair criteria, and consider imposing penalties for
loss of containers; and direct the services to perform economic
an'alyses and consider alternatives avaj.lable when selecting
containers for new procurements. The Secretary of the Army
should improve review procedures for the lutomatic Returr Item
List to ensure that all containers needed in the distribution
systeL are placed on the list. (RRS)](ViewImageLocal?handle=hein.gao/gaobaaxnw0001&div=1&collection=&method=preview&ext=.png&size=3)